The TxDMV’s Role in Transportation Funding Testimony before the House Select Committee on Transportation Funding, Expenditures & Finance Jeremiah Kuntz Director, Government & Strategic Communications Texas Department of Motor Vehicles May 6, 2014 May 6, 2014 Vehicle Registration Fees Texas motor vehicle owners are required to annually renew their vehicle registration. HB 2553 (81R) created a simplified vehicle registration fee structure based on gross vehicle weight that was implemented on September 1, 2011. The state registration fee is split by a formula between the state and the county. Total registration fees include the base fee, a $1 Automation fee (used for improvements to the TxDMV automated systems), and the $1 fee for the Department of Public Safety to support the TexasSure insurance verification program and other Department of Public Safety initiatives. These fees are itemized on the registration receipt. The base registration fees remitted to the state and the DPS insurance program fee are deposited to Fund 6. The automation fee amounts remitted to the state are currently deposited to Fund 1. Optional Fees Charged by Counties All counties may charge, by the decision of the commissioners court, up to a $10 fee to be deposited into the county road and bridge fund. Certain counties (Bexar, Cameron, El Paso, Hidalgo, and Webb) may charge up to $10 in an additional fee that is for the local Regional Mobility Authority. The commissioners court of a county may also charge a fee of not more than $1.50 to fund child safety programs in the county. These optional county fees are charged for each registration transaction. Gross Vehicle Weight - determined by adding the empty weight of the vehicle and the heaviest load that can be carried by the vehicle (carrying capacity) during the registration year. Base Registration Fees Vehicle Type Most passenger vehicles & pick-up trucks Gross Weight 6,000 lbs. or less* Fee $50.75 * almost 75% of registrations Heavy Vehicles & Trucks 6,001-10,000 lbs. 10,001 - 18,000 lbs. 18,001 - 25,999 lbs. 26,000 - 40,000 lbs. 40,001 - 54,999 lbs. 55,000 - 70,000 lbs. 70,001 – 80,000 lbs. Over 80,000 lbs. Additional Fees Trailers & Travel Trailers 6,000 lbs. or less For certain truck tractor and commercial motor vehicle combos, 10 percent is added to the Motorcycles and registration fee charged in order to fund the Texas Mopeds Emissions Reduction Plan (TERP) Surcharge (deposited to Texas Mobility Fund, 365). This fee is set to expire at the end of fiscal year 2019. If a vehicle weighing more than 18,000 pounds or a commercial combo vehicle has a diesel motor, the registration fee due is increased by 11 percent. $54.00 $110.00 $205.00 $340.00 $535.00 $740.00 $840.00 Varies $45.00 $30.00 1 May 6, 2014 County Share of Registration Related Fees Generally, all registration fees collected by the county each year are deposited to the credit of the county road and bridge fund in accordance with the formula set forth in Transportation Code 502.198. The formula is divided into four tiers. The first tier allows the county to retain the first $60,000 of registration fees collected. The next tier allows the county to retain $350 for each mile of road maintained by the county up to a maximum of 500 miles. The third tier allows 5 percent of motor vehicle sales taxes and penalties collected during the previous calendar year in the county to be retained (this will is discussed further on the next page). After all the above amounts have been retained, the final tier allows the county to retain half of the registration fees collected until the amount retained by the county equals $125,000. After the county retains that last $125,000, 100% of the registration fees are remitted to the state. Example: County Portion of Registration & Road and Bridge Fees $250,000,000 $ 60,000 $200,000,000 $150,000,000 $100,000,000 Registration fees retained for county road and bridge fund + $175,000 $350 for each mile of road maintained by county (If 500 road miles max is maintained: $350 X 500 = $175,000) + $200,000 The portion of the 5% motor vehicle sales tax commission retained from registration fees + $125,000 Half of the registration fees collected and retained by the county after above amounts are met up to $125,000 $50,000,000 $0 FY09 FY10 FY11 FY12 FY13 Commissions $75,125,355 $77,629,120 $79,485,653 $83,549,438 $90,111,328 Road & Bridge Fund $163,438,306 $133,885,432 $127,596,009 $120,835,711 $111,635,021 $560,000 Total retained by county for year Optional Road & Bridge $196,619,499 $198,420,966 $200,947,423 $212,955,362 $223,949,438 2 May 6, 2014 Commissions Retained by Counties In addition to the above-mentioned amounts, counties receive compensation for processing vehicle registration related transactions. A county receives $1.90 for each registration receipt issued, 50 cents for each special plate, $2.50 for a replacement registration insignia, $1.25 for a registration transfer, $1.00 for mail-in registrations, $2.00 for a duplicate registration receipt, and $25.00 for a mechanic’s lien notification. Counties receive a commission based upon motor vehicle sales taxes (the third tier from above). The motor vehicle sales tax commission equals 5 percent of the taxes and penalties collected from motor vehicles sales, seller-financed sales and TERP surcharges within a county during the preceding calendar year. In fiscal year 2014, counties receive 90% of the commission from motor vehicle sales tax related charges (from Fund 1) and 10% from registration related fees (from Fund 6). Starting in fiscal year 2015, the entire 5 percent motor vehicle sales tax commission will be funded from motor vehicle sales tax related funds. The relevant statutory authority for this process is found in Tax Code 152.123 and Transportation Code 502.1981. County Motor Vehicle Sales Tax Commission County Motor Vehicle Sales Tax Commission FY 2009-2013 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $2009 2010 Registration Portion 2011 2012 2013 Year 2006 Sales Tax & TERP 10% Registration Fees 90% 2007 20% 80% 2008 30% 70% 2009 40% 60% 2010 50% 50% 2011 60% 40% 2012 70% 30% 2013 80% 20% 2014 90% 10% 2015 100% 0% Sales Tax Portion 3 County Revenue from Registration Fees and Vehicle Sales Tax (Sample Using $50.75 Registration Fee) County Revenue State Revenue County Compensation for Administrative Collection Function $1.90 Registration Fee $50.75 Net Registration Revenue $48.85 First $60,000 Initial Registration Collections 100% $350 for each mile of road maintained by the county up to $175,000 0% $0 5% motor vehicle sales tax commission retained from registration fees 50% Up to $125,000 Next $250,000 50% All Additional Registration Revenue 100% Up To $125,000 Approximately $1.2 Billion (FY 2013) The Make-Up of a Vehicle Registration Fee Motor vehicle owners in Texas are required to renew their vehicle registration annually. The total registration fee is based on the weight of the vehicle, other applicable fees, and the county of registration. The total fee amount is divided between the state and the county. The following is a breakdown of the fees: State Registration Fees (to State Highway Fund 6, after counties retain allowed amounts) Vehicles of 6,000 lbs or less gross weight1 $50.75 (Transportation Code 502.252; in practice covers almost all passenger vehicles & light trucks)2 Motorcycle/Moped $30.00 (Transportation Code 502.251) Trailers & Travel Trailers of 6,000 lbs or less gross weight $45.00 (Transportation Code 502.254) Miscellaneous Fees Automation Fee (to General Revenue Fund 1) $1.00 (Transportation Code 502.356, supports TxDMV automated systems) DPS/Insurance Fee (to Fund 6) $1.00 (Transportation Code 502.357, TexasSure insurance verification program) County Fees (set by statute or commissioners court order, retained by counties) Optional County Fee – Road & Bridge $0 - $10.00 (Transportation Code 502.401) Optional County Fee for Child Safety $0 - $1.50 (Transportation Code 502.403) Optional Regional Mobility Fee $0 - $10.00 (Transportation Code 502.402, certain counties only, some may set up to $20 if voters approve) Transaction Fees (based on how customer chooses to conduct transaction) On-line Fee $3.00 (Transportation Code 502.191, $2 is credit card sucharge, Fund 1; $1 is mail-in fee below) Mail-in Fee (to county) $1.00 (Transportation Code 502.197) Deputy/Subcontractor Fee (retained by vendor) $1.00 - $5.00 (Transportation Code 502.197 & 520.0071), Example: Grocery store contracted with county to process renewals) 1 The gross vehicle weight is determined by adding the empty weight and the carrying capacity of the vehicle. 2 Registration fees are based on the gross weight of a vehicle (Transportation Code 502.253). Fee schedule is: 6,001 – 10,000 lbs. $54.00 10,001-18,000 lbs. $110.00 18,001-25,999 lbs. $205.00 26,000-40,000 lbs. $340.00 40,001-54,999 lbs. $535.00 55,000-70,000 lbs. $740.00 70,001-80,000 lbs. $840.00 Over 80,000 lbs. Varies In addition to the above: For certain truck tractor and commercial motor vehicle combos (under Transportation Code 502.255), 10 percent is added to the assessed registration fee for the Texas Emissions Reduction Plan Surcharge (deposited to Texas Mobility Fund 365). This provision expires August 31, 2019 (Transportation Code 502.358) If a vehicle with a gross weight of more than 18,000 pounds (except for a vehicle registered in combination under Transportation Code 502.255) has a diesel motor, the registration fee due is increased by 11 percent (Transportation Code 502.359) April 2014 Statutory References for Vehicle Registration Related Fees Transportation Code: Sec. 502.058 DUPLICATE REGISTRATION RECEIPT (a) The owner of a vehicle for which the registration receipt has been lost or destroyed may obtain a duplicate receipt from the department or the county assessor-collector who issued the original receipt by paying a fee of $2. (b) The office issuing a duplicate receipt shall retain the fee received. (c) A fee collected by the department under Subsection (a) shall be deposited to the credit of the Texas Department of Motor Vehicles fund. Sec. 502.060. REPLACEMENT OF REGISTRATION INSIGNIA (a) The owner of a registered motor vehicle may obtain a replacement registration insignia by: (1) certifying that the replacement registration insignia will not be used on any other vehicle owned or operated by the person making the statement; (2) paying a fee of $6 plus the fees required by Section 502.356(a) for each replacement registration insignia, except as provided by other law; and (3) returning each replaced registration insignia in the owner's possession. (b) No fee is required under this section if the replacement fee for a license plate has been paid under Section 504.007. (c) A county assessor-collector may not issue a replacement registration insignia without complying with this section. (d) A county assessor-collector shall retain $2.50 of each fee collected under this section and shall report and send the remainder to the department. (e) The portion of the fee sent to the department under Subsection (d) shall be deposited to the credit of the Texas Department of Motor Vehicles fund. Sec. 502.192. TRANSFER FEE The purchaser of a used motor vehicle shall pay, in addition to any fee required under Chapter 501 for the transfer of title, a transfer fee of $2.50 for the transfer of the registration of the motor vehicle. The county assessor-collector may retain as commission for services provided under this subchapter half of each transfer fee collected. The portion of each transfer fee not retained by the county assessor-collector shall be deposited to the credit of the Texas Department of Motor Vehicles fund. Sec. 502.197. REGISTRATION BY MAIL OR ELECTRONIC MEANS; SERVICE CHARGE Text of subsection effective until the effective date of rules adopted regarding the fee under Sec. 502.1911 in accordance with Acts 83rd Leg., R.S., Ch. 1287 (H.B. 2202), Sec. 74(b). (a) A county assessor-collector may collect a service charge of $1 from each applicant registering a vehicle by mail. The service charge shall be used to pay the costs of handling and postage to mail the registration receipt and insignia to the applicant. Text of subsection effective on the effective date of rules adopted regarding the fee under Sec. 502.1911 in accordance with Acts 83rd Leg., R.S., Ch. 1287 (H.B. 2202), Sec. 74(b). (a) A county assessor-collector may retain a service charge in the amount determined by the board under Section 502.1911 from each applicant registering a vehicle by mail. The service charge shall be used to pay the costs of handling and postage to mail the registration receipt and insignia to the applicant. Text of subsection effective until the effective date of rules adopted regarding the fee under Sec. 502.1911 in accordance with Acts 83rd Leg., R.S., Ch. 1287 (H.B. 2202), Sec. 74(b). (b) With the approval of the commissioners court of a county, a county assessor-collector may contract with a private entity to enable an applicant for registration to use an electronic off-premises location. A private entity may charge an applicant not more than $1 for the service provided. Text of subsection effective on the effective date of rules adopted regarding the fee under Sec. 502.1911 in accordance with Acts 83rd Leg., R.S., Ch. 1287 (H.B. 2202), Sec. 74(b). (b) With the approval of the commissioners court of a county, a county assessor-collector may contract with a private entity to enable an applicant for registration to use an electronic off-premises location. A private entity may retain an amount determined by the board under Section 502.1911 for the service provided. (c) The department may adopt rules to cover the timely application for and issuance of registration receipts and insignia by mail or through an electronic off-premises location. Sec. 502.198. DISPOSITION OF FEES GENERALLY (a) Except as provided by Sections 502.058, 502.060, 502.1911, 502.192, and 502.357, this section applies to all fees collected by a county assessor-collector under this chapter. (b) Each Monday, a county assessor-collector shall credit to the county road and bridge fund an amount equal to the net collections made during the preceding week until the amount so credited for the calendar year equals the total of: (1) $60,000; (2) $350 for each mile of county road maintained by the county, according to the most recent information available from the department, not to exceed 500 miles; and (3) an additional amount of fees equal to the amount calculated under Section 502.1981. (c) After the credits to the county road and bridge fund equal the total computed under Subsection (b), each Monday the county assessor-collector shall: (1) credit to the county road and bridge fund an amount equal to 50 percent of the net collections made during the preceding week, until the amount so credited for the calendar year equals $125,000; and (2) send to the department an amount equal to 50 percent of those collections for deposit to the credit of the state highway fund. (d) After the credits to the county road and bridge fund equal the total amounts computed under Subsections (b) and (c)(1), each Monday the county assessor-collector shall send to the department all collections made during the preceding week for deposit to the credit of the state highway fund. Sec. 502.1981. CALCULATION OF ADDITIONAL FEE AMOUNTS RETAINED BY A COUNTY (a) The county tax assessor-collector each calendar year shall calculate five percent of the tax and penalties collected by the county tax assessor-collector under Chapter 152, Tax Code, in the preceding calendar year. In addition, the county tax assessor-collector shall calculate each calendar year an amount equal to five percent of the tax and penalties that the comptroller: (1) collected under Section 152.047, Tax Code, in the preceding calendar year; and (2) determines are attributable to sales in the county. (b) A county tax assessor-collector shall retain under Section 502.198(b) fees based on the following percentage of the amounts calculated under Subsection (a) during each of the following fiscal years: (1) in fiscal year 2012, 30 percent; (2) in fiscal year 2013, 20 percent; (3) in fiscal year 2014, 10 percent; (4) in fiscal year 2015 and succeeding years, 0 percent. (c) The county shall credit the amounts retained under Subsection (b) to the county road and bridge fund. Money credited to the fund under this section may only be used for: (1) county road construction, maintenance, and repair; (2) bridge construction, maintenance, and repair; (3) the purchase of right-of-way for road or highway purposes; or (4) the relocation of utilities for road or highway purposes. **TAX CODE** Sec. 152.123. TAX RETAINED BY COUNTY (a) The county tax assessor-collector each calendar year shall calculate five percent of the tax and penalties collected by the county tax assessor-collector under this chapter in the preceding calendar year. In addition, the county tax assessor-collector shall calculate each calendar year an amount equal to five percent of the tax and penalties that the comptroller: (1) collected under Section 152.047 in the preceding calendar year; and (2) determines are attributable to sales in the county. (b) The county shall retain the following percentage of the amounts calculated under Subsection (a) during each of the following fiscal years: (1) in fiscal year 2006, 10 percent; (2) in fiscal year 2007, 20 percent; (3) in fiscal year 2008, 30 percent; (4) in fiscal year 2009, 40 percent; (5) in fiscal year 2010, 50 percent; (6) in fiscal year 2011, 60 percent; (7) in fiscal year 2012, 70 percent; (8) in fiscal year 2013, 80 percent; (9) in fiscal year 2014, 90 percent; (10) in fiscal year 2015 and succeeding years, 100 percent. (c) The county shall credit the amounts retained under Subsection (b) to the county's general fund. Sec. 502.1985. USE OF REGISTRATION FEES RETAINED BY COUNTY (a) Money credited to the county road and bridge fund under Section 502.198 may not be used to pay the compensation of the county judge or a county commissioner. The money may be used only for the construction and maintenance of lateral roads in the county, under the supervision of the county engineer. (b) If there is not a county engineer, the commissioners court of the county may require the services of the department's district engineer or resident engineer to supervise the construction and surveying of lateral roads in the county. (c) A county may use money allocated to it under this chapter to: (1) pay obligations issued in the construction or improvement of any roads, including state highways in the county; (2) improve the roads in the county road system; or (3) construct new roads. (d) To the maximum extent possible, contracts for roads constructed by a county using funds provided under this chapter should be awarded by competitive bids. Sec. 502.251. FEE: MOTORCYCLE OR MOPED The fee for a registration year for registration of a motorcycle or moped is $30. Sec. 502.252. FEE: VEHICLES THAT WEIGH 6,000 POUNDS OR LESS (a) The fee for a registration year for registration of a vehicle with a gross weight of 6,000 pounds or less is $50.75, unless otherwise provided in this chapter. (b) Repealed by Acts 2013, 83rd Leg., R.S., Ch. 1135, Sec. 140(2), eff. September 1, 2013. Sec. 502.253. FEE: VEHICLES THAT WEIGH MORE THAN 6,000 POUNDS The fee for a registration year for registration of a vehicle with a gross weight of more than 6,000 pounds is as follows unless otherwise provided in this chapter: Weight Classification in pounds 6,001-10,000 10,001-18,000 18,001-25,999 26,000-40,000 40,001-54,999 55,000-70,000 70,001-80,000 Fee Schedule $54.00 $110.00 $205.00 $340.00 $535.00 $740.00 $840.00 Sec. 502.254. FEE: TRAILER, TRAVEL TRAILER, OR SEMITRAILER (a) The fee for a registration year for registration of a trailer, travel trailer, or semitrailer with a gross weight of 6,000 pounds or less is $45.00. (b) The fee for a registration year for registration of a trailer, travel trailer, or semitrailer with a gross weight of more than 6,000 pounds is calculated by gross weight according to Section 502.253. Sec. 502.255. TRUCK-TRACTOR OR COMMERCIAL MOTOR VEHICLE COMBINATION FEE; SEMITRAILER TOKEN FEE (a) This section applies only to a truck-tractor or commercial motor vehicle with a gross weight of more than 10,000 pounds that is used or is to be used in combination with a semitrailer that has a gross weight of more than 6,000 pounds. (b) The fee for a registration year for registration of a truck-tractor or commercial motor vehicle is calculated by gross weight according to Section 502.253. (c) The fee for registration of a semitrailer used in the manner described by Subsection (a), regardless of the date the semitrailer is registered, is $15 for a registration year. (d) A registration made under Subsection (c) is valid only when the semitrailer is used in the manner described by Subsection (a). (e) For registration purposes, a semitrailer converted to a trailer by means of an auxiliary axle assembly retains its status as a semitrailer. (f) A combination of vehicles may not be registered under this section for a combined gross weight of less than 18,000 pounds. (g) This section does not apply to: (1) a combination of vehicles that includes a vehicle that has a distinguishing license plate under Section 502.146; (2) a truck-tractor or commercial motor vehicle registered or to be registered with $5 distinguishing license plates for which the vehicle is eligible under this chapter; (3) a truck-tractor or commercial motor vehicle used exclusively in combination with a semitrailer of the travel trailer type; or (4) a vehicle registered or to be registered: (A) with a temporary registration permit; (B) under Section 502.433; or (C) under Section 502.435. (h) The department may adopt rules to administer this section. (i) The department shall issue a license plate for a token trailer registered under this section that does not expire or require an annual registration insignia to be valid. The alphanumeric pattern for a license plate issued under this subsection may remain on a token trailer for as long as the registration of the token trailer is renewed or until the token trailer is removed from service or sold. The registration receipt required under Section 621.002 is not required for a vehicle that displays a license plate issued under this subsection. (j) A person may register a semitrailer under this section if the person: (1) applies to the department for registration; (2) provides proof of the person's eligibility to register the vehicle under this subsection as required by the department; and (3) pays a fee of $15, plus any applicable fee under Section 502.401, for each year included in the registration period. Sec. 502.356. AUTOMATED REGISTRATION AND TITLING SYSTEM (a) In addition to other registration fees for a license plate or set of license plates or other device used as the registration insignia, the board by rule shall adopt a fee of not less than 50 cents and not more than $1. The fee shall be collected and deposited into a subaccount in the Texas Department of Motor Vehicles fund. (b) The department may use money collected under this section to provide for or enhance the automation of and the necessary infrastructure for: (1) on-premises and off-premises registration and permitting, including permitting under Subtitle E; (2) services related to the titling of vehicles; and (3) licensing and enforcement procedures. Sec. 502.357. FINANCIAL RESPONSIBILITY PROGRAMS (a) In addition to other fees imposed for registration of a motor vehicle, at the time of application for registration or renewal of registration of a motor vehicle for which the owner is required to submit evidence of financial responsibility under Section 502.046, the applicant shall pay a fee of $1. In addition to other fees imposed for registration of a motor vehicle, at the time of application for registration of a motor vehicle that is subject to Section 501.0234, the applicant shall pay a fee of $1. Fees collected under this section shall be remitted weekly to the department. (b) Fees collected under this section shall be deposited to the credit of the state highway fund. Subject to appropriations, the money shall be used by the Department of Public Safety to: (1) support the Department of Public Safety's reengineering of the driver's license system to provide for the issuance by the Department of Public Safety of a driver's license or personal identification certificate, to include use of image comparison technology; (2) establish and maintain a system to support the driver responsibility program under Chapter 708; and (3) make lease payments to the master lease purchase program for the financing of the driver's license reengineering project. (c) Fees collected under this section shall be deposited to the credit of the state highway fund. Subject to appropriation, the money may be used by the Department of Public Safety, the Texas Department of Insurance, the Department of Information Resources, and the department to carry out Subchapter N, Chapter 601. (d) The Department of Public Safety, the Texas Department of Insurance, the Department of Information Resources, and the department shall jointly adopt rules and develop forms necessary to administer this section. For expiration of this section, see Subsection (c). Sec. 502.358. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE (a) In addition to the registration fees charged under Section 502.255, a surcharge is imposed on the registration of a truck-tractor or commercial motor vehicle under that section in an amount equal to 10 percent of the total fees due for the registration of the truck-tractor or commercial motor vehicle under that section. (b) The county tax assessor-collector shall remit the surcharge collected under this section to the comptroller at the time and in the manner prescribed by the comptroller for deposit in the Texas emissions reduction plan fund. (c) This section expires August 31, 2019. Sec. 502.359. ADDITIONAL FEE FOR CERTAIN VEHICLES USING DIESEL MOTOR (a) The registration fee under this chapter for a motor vehicle other than a passenger car, a truck with a gross vehicle weight of 18,000 pounds or less, or a vehicle registered in combination under Section 502.255 is increased by 11 percent if the vehicle has a diesel motor. (b) The registration receipt for a motor vehicle, other than a passenger car or a truck with a gross vehicle weight of 18,000 pounds or less, must show that the vehicle has a diesel motor. (c) The department may adopt rules to administer this section. Sec. 502.401. OPTIONAL COUNTY FEE FOR ROAD AND BRIDGE FUND (a) The commissioners court of a county by order may impose an additional fee, not to exceed $10, for registering a vehicle in the county. (b) A vehicle that may be registered under this chapter without payment of a registration fee may be registered in a county imposing a fee under this section without payment of the additional fee. (c) A fee imposed under this section may take effect only on January 1 of a year. The county must adopt the order and notify the department not later than September 1 of the year preceding the year in which the fee takes effect. (d) A fee imposed under this section may be removed. The removal may take effect only on January 1 of a year. A county may remove the fee only by: (1) rescinding the order imposing the fee; and (2) notifying the department not later than September 1 of the year preceding the year in which the removal takes effect. (e) The county assessor-collector of a county imposing a fee under this section shall collect the additional fee for a vehicle when other fees imposed under this chapter are collected. (f) The department shall collect the additional fee on a vehicle that is owned by a resident of a county imposing a fee under this section that must be registered directly with the department. The department shall send all fees collected for a county under this subsection to the county treasurer to be credited to the county road and bridge fund. (g) The department shall adopt rules necessary to administer registration for a vehicle being registered in a county imposing a fee under this section. Sec. 502.402. OPTIONAL COUNTY FEE FOR TRANSPORTATION PROJECTS Text of subsection as amended by Acts 2013, 83rd Leg., R.S., Ch. 1273 (H.B. 1198), Sec. 1 (a) This section applies only to a county that: (1) borders the United Mexican States; and (2) has a population of more than 250,000. Text of subsection as amended by Acts 2013, 83rd Leg., R.S., Ch. 1277 (H.B. 1573), Sec. 1 (a) This section applies only to: (1) a county: (A) that borders the United Mexican States; (B) that has a population of more than 300,000; and (C) in which the largest municipality has a population of less than 300,000; and (2) a county that has a population of more than 1.5 million that is coterminous with a regional mobility authority. (b) The commissioners court of a county by order may impose an additional fee for a vehicle registered in the county. Except as provided by Subsection (b-1), the fee may not exceed $10. (b-1) The commissioners court of a county described by Subsection (a) with a population of less than 700,000 may increase the additional fee to an amount that does not exceed $20 if approved by a majority of the qualified voters of the county voting on the issue at a referendum election, which the commissioners court may order and hold for that purpose. (c) A vehicle that may be registered under this chapter without payment of a registration fee may be registered under this section without payment of the additional fee. (d) A fee imposed under this section may take effect and be removed in accordance with the requirements of Section 502.401. (e) The additional fee shall be collected for a vehicle when other fees imposed under this chapter are collected. The fee revenue collected shall be sent to a regional mobility authority located in the county to fund long-term transportation projects in the county that are consistent with the purposes specified by Section 7-a, Article VIII, Texas Constitution. (f) The department shall adopt rules necessary to administer registration for a vehicle being registered in a county imposing a fee under this section. Sec. 502.403. OPTIONAL COUNTY FEE FOR CHILD SAFETY (a) The commissioners court of a county that has a population greater than 1.3 million and in which a municipality with a population of more than one million is primarily located may impose by order an additional fee of not less than 50 cents or more than $1.50 for a vehicle registered in the county. The commissioners court of any other county may impose by order an additional fee of not more than $1.50 for registering a vehicle in the county. (b) A vehicle that may be registered under this chapter without payment of a registration fee may be registered without payment of the additional fee. (c) A fee imposed under this section may take effect and be removed in accordance with the provisions of Section 502.401. (d) The additional fee shall be collected for a vehicle when other fees imposed under this chapter are collected. (e) A county imposing a fee under this section may deduct for administrative costs an amount of not more than 10 percent of the revenue it receives from the fee. The county may also deduct from the fee revenue an amount proportional to the percentage of county residents who live in unincorporated areas of the county. After making the deductions provided for by this subsection, the county shall send the remainder of the fee revenue to the municipalities in the county according to their population. (f) A municipality with a population greater than 850,000 shall deposit revenue from a fee imposed under this subsection to the credit of the child safety trust fund created under Section 106.001, Local Government Code. A municipality with a population less than 850,000 shall use revenue from a fee imposed under this section in accordance with Article 102.014(g), Code of Criminal Procedure. (g) After deducting administrative costs, a county may use revenue from a fee imposed under this section only for a purpose permitted by Article 102.014(g), Code of Criminal Procedure.
© Copyright 2026 Paperzz